Seagate Rising: Projects FYQ2 Revenue Above Estimates

By Tiernan Ray

Shares of disk drive maker Seagate Technology (STX) are up 65 cents, or 2%, at $32.05 in late trading after the company this afternoon said revenue in its fiscal Q2 ending in December will be approximately $3.6 billion, and that gross profit will be above 27%, on shipments of 58 million drives.

That is higher than the company's prior outlook for revenue of $3.5 billon, while gross margin is about in line for its expectation for margin “at the low end” of its historical range of 27% to 32%.

Analysts on average have been modeling revenue of $3.53 billion.

Shares of competitor Western Digital (WDC) are up 57 cents at $42.55 in late trading.

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.